Delta Air Lines (DAL) reported its third quarter results, falling short of earnings estimates on revenue and profit. The airline posted revenue of $14.59 billion, slightly below the expected $14.68 billion. Adjusted earnings per share also missed the mark, coming in at $1.50 compared to the expected $1.52.

S&P Global Ratings airlines managing director Jarrett Bilous joins Market Domination to discuss Delta's earnings and provide insights on the broader airline sector.

Bilous characterizes the CrowdStrike (CRWD) tech outage that affected Delta's quarterly performance as "a one-time item," suggesting the airline can weather such isolated incidents. He highlights some "positive takeaways" from the report, noting that supply and demand dynamics in the industry are becoming more balanced, which should benefit all airlines to some degree.

Regarding capacity in the sector, particularly with airlines like ultra-low-cost carrier Spirit (SAVE) facing potential bankruptcy, Bilous cautions that it's "speculative to say at this point." He notes that while Spirit hasn't announced any filing, they are "struggling as an airline to become profitable." The potential impact of Spirit's situation on the broader airline sector remains "debatable," according to Bilous.

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This post was written by Angel Smith